Cruise Line Industry Research Articles

The Cruise Industry and Environmental Sustainability: Focus on the Falmouth Pier, Jamaica

The cruise industry has grown exponentially during recent times. The modern cruise industry is also one of the most outstanding examples of globalization, with an increasing number of ports of call and destinations around the globe. Along with economic, social and financial benefits, are environmental issues that have had negative impact on countries. The environmental sustainability of the cruise line industry, as seen through the lenses of Falmouth Pier port of call is the interest of this study. Using qualitative case studies, a semi-structured interview was administered to an excess of thirty respondents from the Falmouth Pier. Along with a comprehensive review of extant literature, the findings revealed that substantial measures are taken against the destruction of the marine environment, however, more can be done to ensure greater efficiency. It is recommended that the industry adopts a go-green policy and an eco-friendlier approach to its operation.

The ethical dilemmas of Filipino seafarers in cruise line industry: A basis for action plan

The ethical dilemmas of Filipino seafarers in cruise line industry: A basis for action plan

Inventory Management with Advance Supply Contracts Across Multiple Replenishment Periods

In this paper, we study optimal procurement policies with advance contracting option over a finite multi-period horizon for a seasonal product. In this setting, each period is defined by the time between two consecutive inventory replenishment stages where demand is not stationary across periods. Demand for the product in each period is stochastic whose probabilistic distribution is a function of the market signal received right before the beginning of the selling season. The firm receives price discounts by making quantity contracts in advance of the selling season and thus, before the realization of the market signal. Replenishment costs vary across periods during the selling season. We investigate optimal combination of advance contracting and expedited replenishment policies using stochastic dynamic programming. Our research is primarily motivated by applications in the cruise line industry where contracts are made before the final number of bookings is realized and additional purchases can be made at ports of call with varying local prices. Our results show that optimal replenishment policies follow order-up-to policies and there is a unique advance contract amount that minimizes the expected costs over the planning horizon. We provide a numerical sensitivity analysis to investigate the effects of replenishment prices, demand volatility, and disparity between periods in terms of demand on the advance contract amount, replenishments from the spot markets, service levels, and the overall expected cost.

Analyzing the Impact of Organizational Work Stress on the Performance Level of Cruise Line Employees

Organizational work stress is a frequent expression for any working personnel in present phraseology. In most of the organization, the main cause of poor work performance seems to be organizational work stress for employees while performing their task. Employees require a variety of inspiration and work stress extenuating strategies to defeat the organizational work pressure. This research is concentrating to investigate the major influences causing the organizational work stress and describes its impacts on work performance of the crew of cruise line industry. There are numerous work-related stresses appearing for any working personnel in day today life like over workload, on job harassment, improper recognition, dis-satisfaction, etc. The research investigates the impact of job stress on employee performance related factors like workload, working hours, monotonous work, over time, discrimination, and harassment on employees (crew member) work performance. A study was done to carried out the organizational work stress and modifying strategies which may be implemented by the cruise ship employees and various cruise line companies to reduce their job stress which can help in improving the work performance. The organizational managers can use the essential methods to rheostat the organizational work stress of cruise ship employees which may enhance their work-related performance.

Geographic Factors for Managing Cruise Ship Destination Port to Attraction Passenger Transfer in the Caribbean Region

Abstract. The Cruise Line industry (CLI) is working on plans to recover from the economic impacts of COVID-19. Along with the expected benefits of a post COVID19 surge in cruise tourism, destination ports have an opportunity to mitigate potential impacts that come with the tourist economy. In this study, we expand on our previous work on four CLI destination sites (two in the Caribbean and two meso-American) to a larger regional study area in the Caribbean Sea and investigate the sustainability of destination marine infrastructure and near port transportation resilience. Twenty- Eight destinations were analyzed in the study. All the CLI destinations ports in the study are considered mature for cruise tourism and have tourist attractions of interest (including historic, natural, shopping, and other areas with sociocultural authenticity), which can be reached during a one day ship visit. An analysis of the marine traffic and geographic settings provides a more complete picture on key parameters that can potentially impact the commerce and livelihoods of local communities near destination ports. The results of the study also provide potential solutions for mitigating these impacts. As a baseline for fully operational cruise industry in the Caribbean Sea, the 2019 cruise year was analyzed since it was the last full year without impact from COVID-19. This paper offers a wider empirical view of CLI impacts on the Caribbean region once the industry resumes to full capacity following the COVID-19 pandemic, and it presents results and recommendations to build a framework for continued study of CLI sustainability.

Planning and Preparation for Cruising Infrastructure: Cuba as a Case Study

The cruise line industry (CLI) provides an opportunity to rapidly improve national (and regional) economies in destinations. However, lack of planning and proper preparation by destination authorities and the cruise industry can have significant impacts on the local community, commerce, and environment. This paper identifies and quantifies near-shore challenges between the national authorities and the CLI that include port facility preparedness and the potential stresses on local infrastructure. These key parameters used to quantify the impact of the CLI on established destinations can potentially become part of the analysis, negotiation, and communication between all parties involved (government, business, and tourists) as part of the contribution to ensure sustainable CLI destinations. The Port of Havana, Cuba was selected as the study site and was compared against similar cruise line destinations around the Meso-American region (Philipsburg, Sint Maarten, Belize City, Belize, and Progreso, Mexico). The Port of Havana’s natural infrastructure and the carriage available for the incoming ship (i.e., nautical charting) appear to be adequate for welcoming increased cruise ship traffic. The main concerns are the potential toll on local resources including the impact on port traffic and the local infrastructure required to support tourists once they depart the ship.

Mini-Review: Planning and Preparation for Cruising Infrastructure: Cuba as aCase Study

Assessing the environmental, cultural and economic impacts of the Cruise Line Industry (CLI) is an important step in ensuring the long-term sustainability of a destination. With proper planning and implementation, tourism has the potential to make positive contributions to destination ports for the long term. Caribbean islands have been popular cruise destinations for CLI tourism for many years, including American cruise tourism to Cuba when the U.S. government allows it. In order to assess and minimize the impact of CLI tourism on destinations, it is important to conduct marine near-shore and land near-port analysis on the ports used by CLI. This paper provides a short review of Planning and Preparation for Cruising Infrastructure: Cuba as a Case Study and how it determines the potential CLI impact on Havana, Cuba’s port and near-port infrastructure as compared to similar Caribbean destinations, including the methodologies used to do so.

The Impact of Cruise Lines’ Program on Tourism Industry in Incheon

Purpose: This research explores possibilities for unique tourism programs in the Port of Incheon that would bring tourism benefits from the cruise line industry to Incheon. This research also tries to find practical strategies and principles for the cruise line industry by reviewing the current itinerary in the cruise line industry. Research design, data, and methodology: Because this study is exploratory research, it first reviews trends in global tourism, ocean tourism, and the cruise line industry. Then, this study compares the current status of cruise line industry in South Korea with those in Japan. Lastly, existing cruise itineraries are reviewed for practical strategies and principles. Results: Based on reviewing the example of a cruise ship itinerary from the cruise ship company, possible cruise line programs at stopover places are suggested for the Port of Incheon and if the program is planted, it will boost Incheon's economy and tourism industry. Conclusion: Basic data about tourism in coastal regions and data analyses are lacking. Therefore, this study not only recommends further research in itinerary development or evaluation of cruise stopover programs, but also future research should explore the impact of the cruise industry from many different perspectives.

Carnival Corporation: The Challenges of Cutting Costs While Maintaining Quality and Customer Satisfaction

This case study has been developed to facilitate discussion about current supply chain management issues and potential solutions. The scenario presented in this case is very representative of the pressures experienced by supply chain managers. Namely, the need to reduce costs while maintaining quality and customer service. This case presents some unusual challenges and constraints that are unique to the cruise line industry. These constraints can provide an opportunity to explore new supply chain paradigms.

Selecting sustainable alternatives for cruise ships in Venice using multi-criteria decision analysis

The rapid growth of cruise ship tourism increases the use of historic port cities as strategic hubs for cruise ship operators. Benefits derived from increased tourism for the municipality and cruise ships are often at odds with the environmental and social impacts associated with continued historical port use. This study illustrates the use of Multi-Criteria Decision Analysis (MCDA) for weighing of various criteria and metrics related to the environment, economy, and social sustainability for the selection of a sustainable cruise line route. Specifically, MCDA methodology was employed in Venice, Italy to illustrate its application. First, the four most representative navigational route projects among those presented to local authorities were assessed based on social, economic, and environmental considerations. Second, a pool of experts representing the local authority, private port businesses, and cruise line industry were consulted to evaluate the validity and weight assignments for the selected criteria. Finally, a sensitivity analysis was employed to assess the robustness of the recommendations using an evaluation of weight changes and their effects on the ranking of alternative navigational routes. The results were presented and discussed in a multi-stakeholder meeting to further the route selection process.

Empirical Evidence of Revenue Management in the Cruise Line Industry

Revenue management (RM) has received considerable attention from both academic and business professionals. It encompasses several techniques regarding capacity allocation, pricing, and resource management of fixed, time-sensitive capacity. RM can be roughly divided into two categories defined by the control mechanism that increases revenue: capacity allocation or price optimization. Our work falls in the latter category. In our model, we allow for partial substitutability among products (e.g., a customer making a purchase decision may consider multiple alternatives—different departure dates, different destinations, different cabin types). We also include marketing expense in addition to prices as a lever for increasing revenue. These features are relevant to dynamic pricing in practice. The method is illustrated with booking data from a cruise company, yielding optimal advertising and prices for 300 products. The application of the model results in an increase in revenue in the range of 8%–20%.

Consequences of cruise line involvement: a comparison of first-time and repeat passengers

PurposeThis study aims to test the relationships among involvement, perceived price, perceived quality, affective satisfaction, perceived value, attitudinal loyalty and behavioral loyalty in the cruise line industry. In addition, this study attempted to identify whether the differences in these variables exist across first-time and repeat cruise customers.Design/methodology/approachThe web-based survey was used. A total of 403 complete responses were used for data analysis. Anderson and Gerbing’s (1988) two-step approach was used to achieve study objectives.FindingsThe t-test analyses demonstrated that repeat cruise customers expressed significantly lower perceived price and higher affective satisfaction, perceived value and behavioral loyalty than first-time cruise travelers. The structural equation modeling results revealed that involvement has an important role in loyalty generation process. However, the structural model did not significantly differ across first-time and repeat customers.Practical implicationsOverall, the results indicated the critical needs to develop individuals’ interest in cruise vacation with a particular cruise line. Cruise line operators who undertake promotion efforts that enhance people involvement with their cruise line should result in greater likelihood of choosing the same cruise line in the future.Originality/valueWith a lack of research about cruise line involvement and loyalty, this research contributes to theoretical understanding of intricate attitudinal and behavioral loyalty generation process across first-time and repeat cruise passengers.

Cruising Market in Oman: Current Trends and Future Perspectives

Cruising Market in Oman: Current Trends and Future Perspectives Tamer Mohamed Atef, Ph.D; Masooma Al-Balushi, Ph.D Abstract The worldwide cruise industry has expanded over the past decades.For many countries, it has become a significant source of income. Cruising is considered as a holiday that gives a “flavour” of each country, albeit a brief one, so if interested, the country or region could be visited another time for longer period.Cruising companies have succeed in attracting more customer segments by offering a wide range of durations, itineraries, and prices. Prices vary according to the time of year, itinerary and level of luxury. The 1990s witnessed the beginnings of cruising to Oman’s three main ports: Salalah Port in Dhofar governorate, Sultan Qaboos Port in the capital, Muscat, and Khasab Port in Musandam Peninsula.This study aims to explore the Omani cruising market in relation to worldwide cruise industry dynamics. To achieve the aim of the study two objectives were identified:To portray the worldwide cruise line industry, To assess the status of cruise tourism in Oman. Disputes about the economic benefits of cruising have been raised; Who is getting the benefit? Is it the destination ports or the locals? Cruise tourists spend less money and time in Oman than other tourists, but the assumption that a short, professionally handled experience in Oman would bring them back for longer visits cannot be underestimated. As a cruising destination, Oman has great potential for growth and development in the future. Full Text: PDF DOI: 10.15640/jthm.v5n1a1

The Effect of Social Media on Reputation During a Crisis Event in the Cruise Line Industry

ABSTRACTThis research evaluates social media’s role in shaping perceptions of reputation during crisis management in a cruise line setting. Data were collected from respondents in the United States and Germany (N = 334) to explore the influence of speed and clarity of corporate response, brand familiarity, and cultural values on the perception of corporate reputation of a cruise line experiencing a crisis. Results indicated that speed of response using social media, brand familiarity, and cultural values of the respondent affected perceptions of corporate reputation of a cruise line after a crisis.

Cruise Line Product Differentiation Practice: A Cluster Analysis Approach

The cruise business is a big one. With 67 cruise lines that operate 224 ships, just about every combination of ship descriptions can be found. The cruise business has served an estimated 90 million passengers. The purpose of this article is to demonstrate the ways cruise lines and their ships can be differentiated. Using data from Ward’s compendium, cluster analysis is used to determine how these ships differ from each other. The analyses reveal six clusters by which the cruise lines differentiate their services. These results have implications for the marketing of services in the cruise line industry.

Complexity: Toward an empirical measure

Complexity is a significant concern to managers and can undermine operational performance if not managed well, or if managed well could be used to strategic advantage. However, the quantification of complexity is requisite to managing and exploiting it. To date, an easily employable quantitative measure has not been introduced. This has hampered the ability of researchers to conduct large empirical studies and to gain a fuller understanding of the impacts of complexity on organizations. This has in turn impeded the ability of researchers to inform managers about how to manage complexity. This article presents one such measure, the Generalized Complexity Index (GCI), and illustrates it using publicly available data from the cruise line industry. The GCI employs the product structure diagram to create a geometric structure from which the level of the three dimensions of complexity (multiplicity, diversity, and interconnectedness) can be computed. The GCI is a function of these three dimensions. A significant advantage of the GCI is that it can be applied at multiple levels of analysis including product, portfolio, and supply chain. Implications for business diversification research and marketing strategy are introduced and future research topics are identified.

The Legal Strategy of the Cruise Line Industry

The three dominant North American cruise line companies have developed an effective legal strategy that provides a strategic, competitive advantage involving any dispute or litigation with a guest. All cruise guests are required to sign a contract containing similar terms and conditions that limit the loss for personal property, death, personal injury, emotional stress, and mental anguish; require written notice of claims; require filing of lawsuits within a specified shortened period of time; provide mandatory arbitration for certain claims; and waive class actions. The terms and conditions also take advantage of and conform to legislation affecting the maritime industry. At the heart of the strategy is the identical forum selection clause requiring all guests to initiate all suits in the U.S. District Court for Southern Florida. Because most litigation takes place in the same court, corporate counsel will have the benefit of being able to modify and update their terms and conditions to reflect the court’s most recent decisions, even when they were not parties to the case. The ability of litigating in a location close to their home offices is also a huge convenience factor. Equally important, the forum may be one that is very inconvenient for the guest, a factor that may cause some cases to be settled early. The strategy of an industry-wide, comprehensive, and similar set of terms and conditions, anchored by a forum selection clause, is an effective litigation strategy that might be used as model by lodging companies as part of their online contracts.

Segmenting the Cruise Market: An Application of Multiple Correspondence Analysis

The cruise line industry is one of the fastest growing travel sectors, and an industry with a high rate of repeat business. This study contributes to the understanding of potential repeat visitors by segmenting cruise tourists based upon their intent to cruise in the future. The purpose of this research note is to reflect on the segmentation method applied. Respondents were asked to respond to questions about their intentions to cruise in the future, and were able to answer yes, no, or not sure, thus making a traditional factor-cluster approach using principal components analysis (or similar) not feasible. This study uses a two step method that combines Multiple Correspondence Analysis (MCA) with a k-means cluster analysis, to segment the sample based on responses to five questions about future cruising intentions.

Modelling for Cruise Two-Dimensional Online Revenue Management System

To solve the cruise two-dimensional revenue management problem and develop such an automated system under uncertain environment, a static model which is a stochastic integer programming is firstly constructed to maximize the total expected revenue from all kinds of cruise products. Four methods can be applied to solve the above model, which are chance constrained programming, robust optimization, deterministic programming, and bid-price control. In the chance constrained programming method, the stochastic constraints are converted into deterministic equivalent forms. In the robust optimization method, the model is transformed into a goal programming formulations with a scenario-based description of problem data. In the deterministic programming method, the stochastic demand variable is directly replaced with the mean value or expected value of demand. In the bid-price control, the rules for accepting cruise products are proposed. Further, to consider time-variable demand and increase the profit, a dynamic capacity allocation model for cruise two-dimensional revenue management is put forward by applying Markov Decision Process. Then the accept/reject optimal policies for a booking request of cruise products are obtained. The conclusions are as follows: (1) the capacity in the cruise line industry is two-dimensional, that is, the number of cabins and lifeboat seats can both affect availability of cruise products; (2) the demand for all kinds of cruise products is uncertain and the uncertainty can be coped with four solution methods; (3) the characteristics of the cruise industry and time-variable demand have to be incorporated into the static and dynamic capacity allocation models to maximize the expected revenue of the cruise line.

Forecasting for cruise line revenue management

In recent years, the cruise line industry has become an exciting growth category in the leisure travel market. Like airlines and hotels, it reports all characteristics of revenue management (RM). Although RM has attracted widespread research interest in airline and hotel contexts, studies of cruise line revenue management are very limited. Using data from a major North American cruise company, we apply a variety of (24) forecasting methods, which are divided into three categories (non-pickup methods, classical pickup (CP) methods and advanced pickup (AP) methods), to generate forecasts of final bookings for the cruises that have not yet departed at a particular reading point. We use a two-stage framework to test alternative forecasting methods and compare their performance. We found the performance of multiplicative methods to be significantly worse. Among the additive methods, we find that classical methods perform the best, followed by AP and non-pickup methods. All CP methods with the exception of exponential smoothing with trend perform fairly well. Among AP methods, Autoregressive integrated moving average, linear regression and moving average (MA) produce the most accurate forecasts. Within non-pickup methods, MA is the most effective method.